Question
23) New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division
23) New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price? Assume the division is operating at capacity? A) $150 B) $45 C) $55 D) $140 24) New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the maximum transfer price if the division is operating below its capacity? A) $70 B) $170 C) $150 D) $30
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